PT KPC to file 'force majeure'
Monday, August 7 2000 - 02:00 AM WIB
Coal miner PT Kaltim Prima Coal (KPC) has threatened to declare a "force majeure" situation against its customers and the government if the current strike by its employees go on without clear resolution.
KPC's external affairs general manager, Bambang Susanto, said the amount of coal in stock pile in its port was enough for one-day delivery to its customers as supplies from its mining areas were disrupted by the strike and road blockage to KPC's mining sites led by the Indonesian Prosperous Labor Union (SBSI).
"If our coal stocks are enough for one day, maybe we will declare force majeure to our customers," Bambang said.
By declaring a force majeure situation, KPC declares that it cannot deliver coal to its customers on time as stipulated in the contract.
Bambang said that the company regretted the strike and blockage led by SBSI and the inaction of the government's security force to stop the action. He threatened that if the government could not stop the action, it would declare a force majeure situation against the government, meaning that it would not meet its obligation with the government, including paying levies and taxes.
"This has happened for the third time, and there is no improvement at all. If the government cannot solve the problems, we will declare force majeure not only against our customers but also against the government," Bambang said.
Meanwhile, Director General of General Mining Surna Tjahja Djajadiningrat said that he was tired being a middleman in solving the problems between KPC and its employees. He said he would resign from the negotiation.
He blamed SBSI for not respecting the agreement involving SBSI, KPC and the government for the ongoing strike and blockage. He said that SBSI had shifted the problem into political front rather than solving the problem purely as an employer-employee problems.
He said the key to solve the conflicts was law enforcement. If there was an agreement, and it was not enforced, everything would fall apart and there would be no solution, Surna said. Therefore, he called on the law enforcers to take stern measures against those who blockage the access roads to KPC's mining areas. (*)